HDFC Bank’s Pixel Play credit card: So, you can customise this; but is it worth it?

What’s on offer?

Pixel Play credit card offers five categories of rewards that will yield 5 percent cashback (see graphic). You can choose any two categories and can change them within  HDFC Bank’s PayZapp app every three months at no extra cost.

The bank also has tie-ups with three e-commerce merchants, and you can earn 3 percent cashback when shopping online (see graphic). But you need to choose any one e-commerce merchant for this. You can change the merchant using PayZapp every three months at no extra cost. On all other spends, the bank offers 1 percent cashback.

“People's spend patterns are not the same, and this card allows customers to decide how they want to earn their rewards at any given point of time,” says Sumanta Mandal, Founder,  TechnoFino, a platform that reviews debit and credit cards.

“Our target customers are tech-savvy millennials and GenZ, because Pixel Play credit card provides a fusion of customisation, versatility, and digital interaction, all within a user-friendly interface,” says Parag Rao, Country Head, Payments, Liability Products, Consumer Finance, and Marketing.

The minimum income eligibility requirement for a salaried applicant is Rs 25,000 per month, and for the self-employed, the minimum income requirement is Rs 6 lakh per annum (as per the income tax return).

Existing HDFC Bank credit cardholders will shortly be able to apply for Pixel Play credit cards, by reducing the credit limit on their existing HDFC Bank credit card.

The bank will issue a digital credit card stored on PayZapp, and a physical credit card for offline purchases. Additionally, android customers can also use the tap-and-pay feature at  point-of-sale machines for offline payments.

Charges

There is a joining fee of Rs 500. However, it’s waived on spending Rs 20,000 within 90 days of card issuance. There is a renewal fee of Rs 500 from the second year, but even this can be waived (see graphic).

The merits

This is a second-card offering that customises benefits for a low joining fee. In 2022, AU Small Finance Bank launched its LIT credit card, which allowed users to choose features per their spend patterns, with a validity of 90 days at a cost of Rs 49 to Rs 499 per cycle (see graphic). “Compared to LIT, Pixel Play allows users to choose any two categories at no additional cost,” says Mandal.

LIT card charges a fee of Rs 199 (validity for 90 days), and you can earn 5X the reward points for online and offline shopping (for a year you have to pay Rs 796). “The Pixel Play card, on the other hand, offers 5 percent cashback on some useful categories and specific merchants at no additional cost,” says Mandal. So, the reward rate is good for a card with an annual fee of Rs 500, he adds.

The cashback will be credited as Pixel CashPoints in PayZapp. On accumulating 1,000 points, it can be redeemed (will go to your PayZapp wallet) and used to purchase your choice of brand vouchers within PayZapp. These CashPoints are valid for two years from the date of accumulation.​

“Overall, it stands out as a convenient choice for individuals looking to make their purchases more rewarding while not spending much on fees,” says Ankur Mittal, Co-Founder of Card Insider, a platform that tracks the credit card business.

The limitations

“One negative feature is that users won't get the cashback in the form of cash, like regular credit cards; they can redeem cashback points against vouchers only from PayZapp,” explains Mandal.

The interest rate on the overdue amount is steep — 3.60 percent per month, or 43.20 percent annualised.

“For an entry-level credit card, the interest seems to be at the higher end,” says Parijat Garg, a fintech consultant. The card doesn’t offer airport lounge access.

HDFC Bank has specified select merchants under all categories to earn the 5 percent cashback. For instance, in the dining and entertainment category, the merchants are BookMyShow and Zomato. Similarly, while shopping for electronics, you can choose from Croma and Reliance Digital. “Users won't get 5 percent cashback on all merchants within a category,” says Mandal. I. e., if you buy electronics from Vijay Sales, you will not get 5 percent cashback. You will only get 1 percent.

Also read | New credit card allows you to spend on Mastercard, UPI-linked Rupay. A Moneycontrol review

What works

A low-cost credit card with a lot of flexibility on choosing and changing spend categories, unlike regular credit cards, where the focus is largely on the overall spend.

What doesn’t

Cashback of 5 percent can be earned only through a limited number of merchants in all spend categories; for the rest, you earn much less, just 1 percent.